It's the first thing I look for when I buy a stock.
You won't find it often, because it's extremely rare. But when you do, you have the chance to make a significant amount of money in a short period of time.
Let me explain...
If you're a regular Investor Update reader, then you know I'm a fan of buying stock in the world's greatest businesses. Put simply, these are companies that dominate their industries and return billions to shareholders in the form of dividends and share buybacks.
That couldn't be further from the truth...
Take Intel (Nasdaq: INTC), for example. Intel is arguably one of the world's greatest businesses. The company has an enterprise value of $110 billion and it controls nearly 80% of the PC semiconductor market. In fact, chances are you're within arm's reach of an Intel product right now.
You wouldn't expect a company like Intel to offer investors much "action." After all, Intel already rakes in $54 billion a year in revenue. In order for Intel to grow its top line by just 5%, the company needs to generate an additional $2.7 billion in sales. That's no easy feat.
Yet despite Intel's massive size, when I added the stock to my Top 10 Stocks portfolio last August, the stock jumped more than 30% in just two months.
No one invests in a stock like Intel because they think they can make 30% in a matter of months. So how did one of the world's most stable investments manage to return several years worth of gains in such a short amount of time?
The secret to generating huge returns from large, stable investments like Intel all comes down to one thing... investing in major market disconnects.
Market disconnects take place when the price of a given stock or asset class gets "out of sync" with reality. They don't happen often... but when they do, they give us a rare opportunity to purchase high-quality investments at rock-bottom prices.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 28th, 2014 | John Ransom